The mortgage rate affects the Vancouver real estate market by determining the cost of borrowing for home buyers.
In the past when mortgage rates were low, it made borrowing money to purchase a home more affordable, leading to an increase in demand for housing, and potentially driving up home prices!
Currently the mortgage rates are high, it becomes more expensive to borrow money, leading to a decrease in demand and causing home prices to decrease.
The relationship between mortgage rates and the real estate market is complex, and other factors such as economic conditions, housing supply and demand, and government policies also play a role.
Low housing supply in Vancouver is driving up home prices due to increased competition among buyers for limited inventory. When there are fewer homes available for sale, buyers may have to bid higher prices to secure a property, which can lead to an overall increase in home prices.
The low housing supply can also result in a slower pace of sales, as there may not be enough homes available to meet demand.
The shortage of housing supply can be caused by various factors, including limited land availability, zoning restrictions, a slow pace of new construction, and a strong demand for housing.
Call me for a current update on what’s happing in your housing market! When is a good time to buy or sell?
Jessica Prasad 778-241-8946
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